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By Reinier W.L. Russell, LL.M.
Russell Advocaten B.V.
Amsterdam, Netherlands

One of the goals of the new Dutch cabinet is to attract foreign investors to the Netherlands. Among other things, this is caused by the fact that British companies will lose the European market due to the Brexit. It is expected that as a result many companies will look for a business location elsewhere in Europe.

The actions announced by the new Dutch cabinet mainly aim at attracting businesses that will actually be active in the Netherlands. Advantages involve:

  • Lowering of the corporate tax from 25% to 21%, below the European average.
  • Elimination of the dividend tax.

These benefits for businesses will be financed by, inter alia:

  • Letter box companies will have to pay taxes on royalties and interest. How this will be is not clear yet. Until the regulation will become effective, the current tax privilege scheme will apply.
  • Higher tax on polluting fuels.

The government plans extra investments in sustainable sources of energy, infrastructure and defence in addition to health care and education.

The actions will be an addition of the already attractive investment climate in the Netherlands:

  • Access to the European market with more than 500 million consumers.
  • Great infrastructure on land, at sea, and in the air and on the digital highway. (Mainport Rotterdam, Amsterdam Airport Schiphol and Brainport Eindhoven).
  • Major focus on improvement of the competitive position of companies, for instance, tourist flights will be removed from Schiphol on behalf of business traffic.
  • Highly qualified personnel with excellent knowledge of foreign languages. Many facilities for expats and their families.
  • A regulation under which expats on a high income do not have to pay taxes on the first 30% of their salary during the first five years of their stay.

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